Internal Amazon Documents Warned AI Startups Are Delaying AWS Spending

3 days ago

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AI startups are delaying AWS cloud adoption, prioritizing spending on AI models and tools.
AWS faces scrutiny over high prices and perceived lag in AI innovation compared to competitors.
Internal AWS documents reveal a 'fundamental' shift in startup cloud spending patterns.
Startups are using AI services from OpenAI and Anthropic before adopting AWS.
AWS's traditional cloud services are being overshadowed by newer AI technologies like GPU training and AI-as-a-service.
Cursor, an AI coding startup, spends less than 10% on AWS traditional services compared to AI categories.
AWS's revenue growth lags behind Google Cloud and Microsoft Azure in the AI sector.
AWS is perceived as 'playing catch up' in AI by investors and industry influencers.
AWS is working on strategies to better engage early-stage AI startups and improve pricing competitiveness.

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